What a statement of adjustments is in a Canadian real-estate closing and how it affects the final cash needed to close.
A statement of adjustments is a closing document that shows how the purchase price is adjusted between the buyer and seller for items such as deposits, prepaid expenses, or amounts that need to be reimbursed on closing.
This document helps explain the final cash figure the buyer must bring to close. It turns the broad idea of closing costs into a deal-specific number.
Canadian lawyers or notaries commonly use the statement of adjustments to account for things like the deposit already paid, property tax adjustments, condo fee adjustments, fuel adjustments, or other contract-specific items. The form and detail level can vary by province and professional workflow.
If the seller already paid property taxes covering a period after closing, the buyer may reimburse the seller for the buyer’s share through the statement of adjustments. That amount increases the cash needed to close.
The statement of adjustments is not the mortgage contract. It is part of the closing math around the purchase.
Borrowers also sometimes assume all adjustment documents will look identical. In practice, layout and terminology vary across lawyers, notaries, provinces, and transaction types.
Adjustment items depend on the purchase agreement, local practice, and the actual timing of closing. Not every file will contain the same line items.